How to Buy a Home in Washington State: The Complete Step-by-Step Guide

Washington State Real Estate: What Makes It Different

Buying a home in Washington State follows a process that's similar in broad strokes to other states but differs in key specifics: the forms used, the contingency structure, the closing process (attorney-free — title companies do closings here), and the disclosure requirements.

If you've bought a home in another state, don't assume the same rules apply. If this is your first time buying anywhere, this guide walks you through every step.

Step 1: Find a Lender and Get Pre-Approved

Before you do anything else, get pre-approved for a mortgage. Not pre-qualified (a 5-minute self-reported estimate) — pre-approved (a full underwriting review of your finances).

In Washington's active markets, sellers expect a solid pre-approval letter. A letter from a well-known local lender carries more weight than one from an online bank that sellers have never heard of.

Documents needed:

• ✓Last 2 years W-2s and tax returns
• ✓Last 2 pay stubs
• ✓Last 2 months bank statements
• ✓Photo ID
• ✓Gift letters (if any portion of down payment is gifted)

Step 2: Hire a Buyer's Agent

In Washington State, buyer's agents are compensated by the seller in most transactions (though this is evolving post-NAR settlement — your agent will explain the current structure). You deserve expert representation, and there's generally no direct cost to you.

Look for an agent who:

• ✓Works primarily with buyers (not just sellers)
• ✓Is deeply familiar with your target area
• ✓Communicates your way (text, call, email — your preference)
• ✓Has specific experience with your loan type (VA, FHA, conventional)

Step 3: The Home Search

Work with your agent to define must-haves, nice-to-haves, and dealbreakers. Be honest about your priorities — this saves everyone time.

Your agent will set up automatic MLS alerts so you see new listings the moment they hit the market. In active markets, the best homes are gone in 7–14 days. Check your email.

Step 4: Making an Offer — Washington State Forms

Washington State uses standardized forms published by the Northwest MLS (NWMLS). Key forms:

Form 21 — Residential Purchase & Sale Agreement: The main contract. Covers price, closing date, earnest money, possession date, and all terms.

Form 22A — Financing Contingency: Protects you if you can't get a loan. Specifies loan type, amount, and interest rate limit. If your financing falls through within the contingency period, you can back out and recover earnest money.

Form 35 — Inspection Contingency: Gives you the right to inspect the home and either request repairs/credits/price reduction, or back out if unsatisfied. This is your safety net for discovering unknown defects.

Form 35F — Sale of Buyer's Home Contingency: Rarely used in competitive markets. Allows purchase to be contingent on selling your current home first.

Form 65B — Escalation Addendum: In multiple-offer situations, allows your offer to automatically escalate above competing offers up to a maximum price.

Step 5: Earnest Money

When your offer is accepted, you deposit earnest money — typically 1–3% of purchase price. In Kitsap, $5,000–$15,000 is common.

Earnest money is deposited with the closing escrow/title company. It applies toward your down payment and closing costs at closing.

When you keep your earnest money: If you back out during a contingency period (inspection, financing), you recover your earnest money.

When you lose your earnest money: If you back out outside a contingency period without a valid contractual reason, the seller may claim your earnest money.

Step 6: Seller Disclosures — Washington State Seller Disclosure Act

Washington State has one of the most comprehensive seller disclosure laws in the US. Sellers must complete a Seller Disclosure Statement (Form 17) covering:

• ✓Known defects in the property
• ✓Water quality and source
• ✓Sewer/septic status
• ✓Title issues
• ✓Environmental concerns
• ✓Neighborhood conditions

Review Form 17 carefully. You have 3 business days after receiving it to back out of the contract — even if you've already signed — if you find the disclosures unacceptable.

Step 7: Inspections

Washington State buyers routinely get:

• ✓Home inspection: $450–$650, covers all major systems
• ✓Septic inspection: $150–$300 (if applicable)
• ✓Sewer scope: $150–$250 (for city-sewer properties)
• ✓Radon test: $100–$150

Use the inspection report to negotiate repairs, credits, or price reductions via Form 35.

Step 8: Appraisal & Loan Approval

Your lender orders the appraisal after the inspection period. Appraisals in Washington's market typically take 10–14 days from order to delivery.

After appraisal, underwriting reviews your full loan file and issues an approval with conditions. Respond to any document requests within 24 hours — this is where deals slow down unnecessarily.

Step 9: Closing in Washington State — Title Company (Not Attorney)

Unlike many states, Washington closings are handled by title/escrow companies, not attorneys. The process:

1. Escrow prepares and sends closing documents to your lender for review
2. Lender issues "clear to close"
3. You receive a Closing Disclosure at least 3 business days before closing
4. You sign documents at the title company
5. Your lender funds the loan
6. The deed records with the county — you get keys!

What to bring to closing: Government-issued photo ID, cashier's check or confirmation of wire transfer.

Washington State Transfer/Excise Tax

Washington State imposes a Real Estate Excise Tax (REET) on sellers — not buyers. The graduated rate in 2026 runs from 1.1% to 3.0% of the sale price. As a buyer, you don't pay this directly, though it influences pricing negotiations.

Ready to navigate Washington State's home buying process with expert guidance?

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🏠 Equal Housing Opportunity | Jorge Downie, Keller Williams Greater 360 | 360-930-9004 | homes@jorgedownie.com